AP®︎ Microeconomics: Topic 4.1 Practice Test
Prepare for your quiz, test, or the AP exam with focused practice questions on Topic 4.1 of AP Microeconomics – Introduction to Imperfectly Competitive Markets.
Questions List
Topic 4.1
Question 1 Easy
This question tests the following: PRD-3.B.1
What is the term for a market with many sellers offering differentiated products?
What You’re Being Tested On:
Explore the learning objectives taken directly from the College Board’s AP® Microeconomics Curriculum. Ensure you’re prepared for the exact topics covered on the AP® exam, in-class tests, and quizzes, and gain confidence in your mastery of the material.
Topic 4.1: Introduction to Imperfectly Competitive Markets
Learning Objective: PRD-3.B
a. Define (using graphs where appropriate) the characteristics of imperfectly competitive markets and inefficiency.
Essential Knowledge: PRD-3.B.1
Imperfectly competitive markets include monopoly, oligopoly, and monopolistic competition in product markets and monopsony in factor markets.
Essential Knowledge: PRD-3.B.2
In imperfectly competitive output markets and assuming all else is constant, a firm must lower price to sell additional units.
Essential Knowledge: PRD-3.B.3
In imperfectly competitive markets, consumers and producers respond to prices that are above the marginal costs of production and/or marginal benefits of consumption (i.e., price is greater than marginal cost in an inefficient market).
Essential Knowledge: PRD-3.B.4
Incentives to enter an industry may be mitigated by barriers to entry. Barriers to entry—such as high fixed/start-up costs, legal barriers to entry, and exclusive ownership of key resources—can sustain imperfectly competitive market structures.
